The markets are on a break this week with only three trading days. It opened on a gap up but could not really build on the gains in the next two sessions. It is very interestingly poised now to either breakout and regain the All Time High levels again or succumb to the increasingly dire Covid situation again at home. The global context remains strong and the tailwinds of lower yield can help on the upside.
STAIRS our index trading product remained subdued and lost some ground as the gaps and vicious whiplashes continue. The index has now been in a range for more than 8 weeks now. The Futures strategy has accumulated near 5800 points on BankNifty and near 1230 points on the Nifty in CY 2021 down from the highs in Feb.
On a 3X leverage, capital of 10L became 13.9L+ in BN and 13.5 Lacs in Nifty futures Model 2 so far in CY21. In plain options buying also capital of 10L would be at 15.4L and 12.7L respectively.
The Options4STAIRS models work off the STAIRS signal so that you only spend a few mins a day at designated time to look into the markets. No staring at the screen all day!! Our options strategies have broken the myth that simple strategies cannot yield results .
The option sell spread model which is like an income generating model, has also done wonderfully well at 23-25% so far in CY2021
The key to all trading systems is to have a tight control over the position size and to reduce the same as we go into a drawdown. Many accounts which are not well funded will not be able to reduce position size and they should wait out or add funds. If you are unable to deal with the volatility which can happen to anybody, it is best to reduce leverage, reduce position, go from Model 1 to Model 2 OR move from futures to options.
More details on the options models are here. Options are a part of the STAIRS program
We have released detailed videos on STAIRS on my you tube channel for all to go through
The Weekendinvesting Smallcases were all flying this week despite the markets remaining sideways this week and all strategies gained ground. When you have strong stocks with relative strength in the portfolio, you will often get such out performance.
These are all long term strategies that will create enormous wealth in each upswing and then maybe give some back in the downswing and repeating this process again and again achieving the compounding effect. With patience and grit to follow strategy over ups and downs over the last nearly five years it has been shown that much superior CAGR returns are possible than the benchmarks.
The ATH portfolio gained this week to another ATH along with Allcap …ATH closed the FY21 at +180%+
The new financial year FY22 also started with a bang and a single day gain of +4.4% . The strategy ATH will be closed for new subscription from Sat Apr 3rd onwards.
FY21 has been phenomenal and I will let the numbers speak for themselves.
And FY22 starts with a bang…
For Monday 5th Apr 2021, the proposed changes are:
Mi_LT_CNX200 : 0 ADD, 0 EXIT
Mi_MT_Allcap : 1 ADD, 1 EXIT
Mi30 : 0 ADD, 0 EXIT
Mi50 : 1 ADD, 1 EXIT
Mi_ST_ATH : 0 ADD, 0 EXIT
Mi 25 : 0 ADD, 0 EXIT
The selection of the smallcase can be based on
a. Sub Segment of the market : Mi25 for smallcap, Mi_All_cap for all round diversification OR LTCNX 200 for large caps only
b. Activity specific smallcase like Mi ST ATH which chases all time high stocks
c. Or more passive strategies like NNF10 and NG5050 which are monthly rebalanced ones best to replace index investing with or for asset allocation.
2 new smallcases on existing products like Mi30 and Mi50 have been added in the last few weeks which suit portfolio size of 10L and more.
In the LIVE product strategies, there were again good gains and all portfolios gained ground
The LIVE products area more suitable for large portfolios who are not chasing high returns and want more mature and diversified lower risk portfolios. Also the user here churns his portfolio at Fri 3 PM along with the model and there is no slip between the model the actual experience.
For LIVE Products proposed changes for week ended 02.04.21
Mi25 : : 0 ADD, 0 EXIT
Mi30 : : 0 ADD, 0 EXIT
Mi40 : : 1 ADD, 2 EXIT
Mi50: : 1 ADD, 1 EXIT
That is all from my end for now . Do let me know about your experience with our products or services and where you feel we can improve more. Always willing to listen and implement.
Have a safe week…!!